7KBW
5 Experts
13 Contributions by 7KBW Experts
PRACTICE NOTES
This Practice Note outlines how a dispute progresses under the third edition of the ARIAS (UK) Rules, adopted in 2014 (the ARIAS Rules). For an introduction to ARIAS, see Practice Note: Arbitration under the ARIAS (UK) Rules 2014.
Formal requirements
Under ARIAS Rule 17, an award must:
be set out in writing (ARIAS, rule 17.2)
be in the primary language of the arbitration (ARIAS, rule 17.2)
state the seat of the arbitration (ARIAS, rule 17.2)
state the date of the award (ARIAS, rule 17.2)
give reasons (unless the parties agree otherwise, or the tribunal issues a consent award at the parties’ request) (ARIAS, rule 17.10)
be signed by the sole arbitrator, the umpire, or two of the three arbitrators, as appropriate (ARIAS, rule 17.3)
The ARIAS Rules do not prescribe a time frame for when the award must be
Arbitration
PRACTICE NOTES
Arbitrations arising from insurance and reinsurance disagreements reflect many of the characteristics found in other commercial arbitration. This Practice Note outlines both ad hoc and institutional procedures for arbitrations within the insurance sphere. It further addresses Bermuda Form proceedings that can flow from ‘Bermuda Form’ policies, a distinct class of excess liability insurance. References to ‘insurance’ in this Practice Note are to ‘insurance and reinsurance’ unless stated otherwise.
The Practice Note covers:
Agreements to arbitrate in the insurance context, institutional and ad hoc arbitration
Bermuda Form arbitrations
Agreements to arbitrate, institutional and ad hoc arbitration
Agreements to arbitrate
For arbitration to be used as a route to resolve a dispute, the parties to the insurance contract must either have agreed to refer the dispute or difference that has arisen to arbitration, or must agree, after the dispute has arisen, to arbitrate. It is
Arbitration
PRACTICE NOTES
This Practice Note provides an overview of the Fast Track Rules of the AIDA Reinsurance and Insurance and Arbitration Society of the UK, or the ARIAS Fast Track Rules (AFTAR Rules), in force from 3 October 2013, which regulate insurance and reinsurance arbitration proceedings. For a general introduction to ARIAS, see Practice Note: Arbitration under the ARIAS (UK) Rules 2014. AFTAR was devised to address concerns within the insurance and reinsurance markets that conventional arbitration, even under the ARIAS Rules, was slow and not cost-effective owing to reliance on a three-person panel. AFTAR comprises both rules and explanatory notes. Where any explanatory note conflicts with the rules, the rules prevail.
Key differences from the ARIAS Rules
AFTAR broadly mirrors the framework of the ARIAS Rules, and many elements are materially the same: the procedures for commencing an arbitration and serving notice, the
Arbitration
PRACTICE NOTES
Practice Note
This Practice Note outlines how disputes progress under the 3rd edition of the AIDA Reinsurance and Insurance and Arbitration Society (ARIAS) (UK) Rules (the ARIAS Rules), adopted in 2014. For a primer on ARIAS, see Practice Note: ARIAS (UK) Rules and Procedure. Unlike many other arbitral rule sets, there is no fixed procedural roadmap taking an ARIAS arbitration through to a hearing. Instead, the focus is on the parties agreeing their own procedure and timetable (ARIAS, rule 10.1 and Note to Rule 10) so that the dispute is resolved proportionately. Even where consensus is reached, the tribunal may displace any arrangement it believes would not allow the dispute to be determined in a proportionate way, without needless delay or cost (ARIAS, rule 10.1). In practice, an arbitral tribunal will generally attach significant weight to solutions the parties have themselves settled upon for any
Arbitration
PRACTICE NOTES
This Practice Note outlines the steps for commencing an arbitration and replying to a notice of arbitration in line with the third edition of the ARIAS (UK) Rules, adopted in 2014 (the ARIAS Rules). Those Rules govern any ARIAS reference begun on or after 1 January 2014. ARIAS arbitrations started before 1 January 2014 are subject to the ARIAS Rules 1997 (click here for the second edition). For an introduction to ARIAS, see Practice Note: Arbitration under the ARIAS (UK) Rules 2014. For guidance on agreeing to adopt the ARIAS Rules for resolving disputes, see Practice Note: ARIAS (2014)—general procedure.
Starting an arbitration Notice of Arbitration
The party initiating the arbitration (the claimant) does this by serving the intended respondent with a written notice of arbitration (ARIAS, rule 4.1)...
Arbitration
PRACTICE NOTES
This Practice Note outlines the process for appointing arbitrators under the 3rd edition of the ARIAS (UK) Rules, adopted in 2014 (the ARIAS Rules). For an overview of ARIAS, see Practice Note: Arbitration under the ARIAS (UK) Rules 2014...
Requirements under ARIAS Rules
In an ARIAS arbitration, the parties may decide how many arbitrators will sit on the tribunal and what qualifications they must possess (ARIAS, rule 6.1). If, in whole or in part, the parties fail to agree on the tribunal’s composition, the default provisions in the ARIAS Rules apply, which in their basic structure mirror the appointment process in the ARIAS arbitration clause. The rules provide that, unless the parties agree otherwise:
the tribunal will comprise three arbitrators...
Arbitration
PRACTICE NOTES
Aggregation—background
Aggregation continues to pose a significant challenge when settling insurance and reinsurance claims, spawning numerous market disputes. Claims managers, arbitrators and even appellate courts often adopt differing interpretations of what particular policy wordings seek to achieve within an aggregation clause. After a run of rulings on familiar aggregation wording in the late 1990s and early 2000s, matters grew quieter. The final waves of litigation arising from the 9/11 tragedy, alongside clusters of solicitors’ and medical negligence claims, illuminated the modern approach to aggregation. More recently, the wealth of insurance disputes sparked by the coronavirus (COVID-19) pandemic—predominantly concerning business interruption losses—has given the courts a platform to revisit the relevant principles.
What are aggregation clauses?
An aggregation clause is a familiar feature of insurance and reinsurance contracts, allowing two or more separate losses covered by the policy to be treated as a single loss for the
Insurance & Reinsurance
PRACTICE NOTES
Arbitrations stemming from insurance and reinsurance disputes resemble other commercial arbitrations broadly in many material respects, yet they also carry particular characteristics. This Practice Note outlines those distinguishing aspects and offers direction on arbitral procedure and tactics and strategy within an insurance and reinsurance setting. For details on the varieties of insurance arbitration, including ad hoc arbitration, institutional arbitration and Bermuda Form arbitrations, see: Understanding institutional and ad hoc arbitration—overview and Practice Note: Insurance and reinsurance arbitration—an introduction.
Distinctive features of insurance arbitrations
Common distinguishing features of insurance arbitration, explored in greater depth below, include:
multiple arbitrations on similar facts, which can raise issues concerning, for example:
appointment of arbitrators
consolidation of proceedings
disclosure of information obtained in one set of
Arbitration
PRACTICE NOTES
This Practice Note outlines guidance on the third edition of the ARIAS (UK) Rules, brought into effect in 2014 (the ARIAS Rules). For direction on using the ARIAS Fast Track Arbitration Rules, refer to Practice Note: ARIAS Fast Track Rules (AFTAR) 2013.
What is ARIAS?
The AIDA Reinsurance and Insurance Arbitration Society of the UK (ARIAS (UK)) was founded in 1991 as a Centrally Affiliated Chapter of AIDA—the Association Internationale de Droit des Assurances—an international body committed to advancing the study and understanding of insurance law (click here for the ARIAS (UK) website). ARIAS emerged amid a rise in insurance and reinsurance disputes to champion methods of settling such disagreements that matched market expectations, chiefly via arbitration.
Services
ARIAS is not an institution. Unlike arbitral bodies such as the LCIA, it has no secretariat, and its involvement in arbitrations under its rules is confined to
Arbitration
PRACTICE NOTES
This Practice Note sets out the defining features of liability insurance and the range of liability insurance types available. It further reviews the breadth of cover provided by liability policies and offers guidance on determining liabilities and assessing the reasonableness of loss settlements, alongside notes on recurring issues in liability insurance, such as joint and composite insurance and how the Third Parties (Rights Against Insurers) Act 2010 (TP(RAI)A 2010) applies...
The related documents pod on the right supplies links to more detailed guidance on particular aspects of liability insurance, including the notification of claims and circumstances, the defence of claims, and resources addressing specific forms of liability insurance...
What is liability insurance?
Liability insurance is a class of cover that protects the insured against the risk of becoming liable to a third party. In the same way as property insurance, it safeguards the insured against loss...
Insurance & Reinsurance
PRACTICE NOTES
Notification provisions in liability insurance policies
This Practice Note offers direction on notification clauses in liability insurance. It outlines the function of these provisions and explains how to notify claims or relevant circumstances to insurers—covering what should be reported and when. It also discusses the possible outcomes where notification obligations are not properly observed. In addition, it addresses the respective rights and duties of insurers and insureds in relation to the insured’s duty to mitigate its losses and the defence and settlement of claims. For information about liability insurance generally, see Practice Note: Liability insurance. The related documents pod on the right contains links to further guidance on liability insurance and to guidance on its specific forms.
Liability policies almost always contain a term (frequently a condition precedent) requiring the insured to notify the insurer within a specified period of any claims brought against them.
Insurance & Reinsurance
PRACTICE NOTES
This Practice Note offers hands-on guidance on reporting claims or potential matters under liability policies, including professional indemnity cover. For more on liability cover, refer to the Practice Notes: Liability insurance—essentials and Liability insurance—notification of claims and circumstances and defence of claims.
Review your policy
Most liability policies are written on a ‘claims made’ basis, obliging the policyholder to notify claims or circumstances (as distinct from loss or damage to insured property). Your first task is to examine the policy wording to determine precisely what must be notified and the timing requirements.
If more than one policy might respond, evaluate each and check for any other insurance provisions (see Practice Note: Double insurance and contribution).
Gather all relevant documents, including the complete wording together with schedules and endorsements. Where only a summary was supplied at placement—as is common—you may need to source the full wording from the broker or
Insurance & Reinsurance
PRACTICE NOTES
What is professional indemnity insurance?
Professional indemnity insurance is a type of liability cover. It offers an individual professional or a firm an indemnity and protection against claims or losses resulting from negligent acts, mistakes or omissions linked to the insured professional practice. This cover usually also includes the acts, errors and omissions of former employees. In certain sectors—such as solicitors, accountants, architects, chartered surveyors, financial advisers and some healthcare professionals—holding professional indemnity insurance is a legal requirement. Nonetheless, any person or business that supplies advice, designs or services in a professional capacity should carry this insurance. The cover is generally intended to respond to client claims for damages arising in the ordinary course of the insured's professional services. These are claims brought by a client in connection with the routine delivery of the insured party’s professional services. For detailed guidance on
Insurance & Reinsurance
If you expected to see yourself on this page, click here.
